British Council and the Integrated Review

In our report of October 2020, the all-party group made clear our recommendation that there should be a soft power strategy at the heart of the integrated review, providing our assets of influence parity with other hard power assets, so that they are able to complement one another. The report also recommended that our soft power assets should continue to operate independently, as assets of influence are most effective when the engagement they deliver has a value for its own sake. Allowing these assets to act independently and authentically boosts their effectiveness—their efficacy; everyone knows that Russia Today and the Confucius Institutes are instruments of Russian and Chinese state power, and they lack effectiveness, value and credibility as a consequence. While alignment with Britain’s foreign policy objectives is essential, operationally, soft power assets such as the British Council should be free to develop and implement their own strategies, drawing on their skills, insight and expertise derived from decades of experience.

Inevitably, there is also a need to sustain and enhance our international engagement with appropriate funding. In recent years, the British Council has ensured its grant-in-aid funding from the Government stretches far, and has used the surplus from its commercial activities to support and maintain its activities abroad. Members may not be aware that in normal times the British Council receives only 15% of its income from the state, whereas its French, German and Japanese equivalents receive 48%, 62% and 65% respectively.

The coronavirus pandemic has been hard for the British Council, as almost all of its commercial activity, and its associated income, has understandably come to a halt and will not restart substantially for some time. As in other areas, it must be said that the Government have been supportive, and my understanding is that the British Council is now on firmer footing than was feared even a few months ago when insolvency was a very real risk. Nevertheless, I also understand that discussions are ongoing and that many options are on the table. Therefore, as the Government consider our international engagement in the integrated review, I urge them to think strategically about our soft power and take the long view rather than short-term decisions, which, in coming years, we may regret. In particular, the Government and the Foreign, Commonwealth and Development Office especially should reflect on the fact that if the British Council ceases to have a presence in a given country, not only is it unlikely that a presence would be easily re-established, but such a move also leaves space for other countries which will be sure to notice and fill the vacuum, and not all those countries may be friendly to our own.

I am confident that Members across the House, especially those active in the all-party group that I chair, will be deeply concerned by a decision to reduce the British Council’s network, which is a vital part of building the close long-term relationships in which the organisation specialises and from which the whole UK profoundly benefits. Furthermore, a retreat on the global stage is difficult to square with the Government’s ambitions for global Britain, and quite rightly so. Overall, I agree with the Defence Secretary’s assessment that there is not enough of the British Council around the world. I am sure that the Foreign Secretary and the Minister will also share that opinion, and I look forward to hearing confirmation of this when the Minister responds to the debate.

Once again, I urge the Minister to do all he can to ensure that soft power is at the heart of the integrated review. In this year of UK leadership of the G7 and the COP26 environmental talks, the Government should enhance and capitalise on our soft power strengths to preserve our role as a global leader and broker on the world stage and fully realise the ambitions of global Britain.

As I set out, the integrated review will map out the UK’s direction for recovery from covid-19. It is important to acknowledge that the British Council has been acutely affected by the pandemic, as my hon. Friend said. At the pandemic’s peak—at its worst—more than 90% of the British Council’s teaching and exam centres were forced to shut, with a huge impact on the organisation.

We have worked hard to provide the British Council with additional support at a time of strain on public finances. Last March, the Department provided £26 million of emergency funding, as well as providing half of the council’s grant-in-aid funding up front. We will also provide up to £145 million in loans to ensure that the British Council is able to continue to operate through this exceptionally difficult time. We will provide further financial support for future restructuring plans to enable the British Council to rebuild its commercial surpluses.

The British Council delivers key soft power benefits for the UK, as I have said, through its networks and expertise. It ensures UK influence through its programming. It attracts students and visitors to the UK and, through its work on the ground with communities and young people, it helps to secure global co-operation, as referenced in the intervention by the hon. Member for Strangford (Jim Shannon).

The full conclusions of the integrated review will set out the UK’s vision for the next decade. It will be based on our values and grounded in the UK national interest. I have no doubt that the British Council will continue to play a vital role, and the FCDO will continue to support it as one of our most valuable soft power institutions.